Destin Brass

Kyle Birrell MBA 6120 Destin Brass Products Co. 1. first principle courting| | make ups| Valves| Pumps| feed Controllers| Cost Driver| units| | 7500| 12500| 4000| | Material Cost| | 16.00| 20.00| 22.00| Material| look at patience| | 4.00| 8.00| 6.40| Labor| Set-up Labor| | 0.02| 0.05| 0.48| Labor| Receiving| 20000| 0.08| 0.30| 3.90| alphabet| discourse| 200000| 0.80| 3.04| 39.00| alphabet| Machine Depreciation| 270000| 12.60| 12.53| 4.73| Machine| Engineering| hundred thousand| 2.67| 2.40| 12.50| alphabet| Packing/Shipping| 60000| 0.24| 1.10| 10.95| ABC| Maintenance| 30000| 1.40| 1.39| 0.53| ABC| | | | | | | | whole Cost| 37.81| 48.82| 100.49| | 2. beat Unit Cost conventional| $ 37.56 | $ 63.12 | $ 56.50 | Standard Unit Cost Trad Rev| $ 49.00 | $ 58.95 | $ 47.96 | Standard Unit Cost ABC| $ 37.81 | $ 48.82 | $ 100.49 | | | | | at that place are noted deviations in sepa rately of the costing methods. Each of the traditional methods go through a iodin cost device driver to estimate and allocate the overhead to separately product.

The difference between the first and the revise traditional estimates comes from utilize a opposite cost driver for each(prenominal) method. The ABC method can use multiplex cost drivers since diametrical costs can be goaded by different things. 3. By seeing the differences in each of the methods above, the lodges management would have to buy in on which method they impart move forward with. I would recommend they use the ABC method. By using this method, their saccharide m! argin leave alone change for two of the ternary products, namely the pumps and flow controllers. The will be making a much higher profit margin on the pumps, except will need to do something to reduce costs on the flow controllers in ordinance to make money. There biggest set down is the handling cost for the controllers. 4. There should be no difference in the net income of the company as the...If you want to pack a full essay, rewrite it on our website: BestEssayCheap.com

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